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Cryptocurrencies have gained a lot of popularity over the last two years. Ever since the COVID lockdown, the cryptocurrency market has been recording a tremendous growth in volumes. COVID caused a lot of turmoil in which a lot of people lost their jobs and several businesses took a hit which caused them to shut down for good.
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How to start a Cryptocurrency SIP (Systematic Investment Plan)
Cryptocurrencies have gained a lot of popularity over the last two years. Ever since the COVID lockdown, the cryptocurrency market has been recording a tremendous growth in volumes. COVID caused a lot of turmoil in which a lot of people lost their jobs and several businesses took a hit which caused them to shut down for good. During such times people were looking for places to generate an income and quite a few turned to the cryptocurrency market and ended up making a fortune. This article will help you get started with investing in the cryptocurrency market using small amounts at regular time intervals (ideally monthly) and will also explain the benefits of such a plan. We will also help you get started with questions like how do I buy cryptocurrency in Canada.
First, let’s start with understanding what is a SIP and its benefits in a Cryptocurrency marketA Systematic Investment Plan (SIP), more popularly known as SIP, is a facility offered by institutions to investors to invest in a disciplined manner. SIP facility allows an investor to invest a fixed amount of money at pre-defined intervals in the selected mutual fund scheme. SIP intervals can be on a weekly/monthly/quarterly/semi-annually or annual basis. To get started with a SIP in the cryptocurrency market all you need to do is decide on a sum of money and a time frame to keep recurring the payments.
Why start a SIP in the Cryptocurrency market?The cryptocurrency market is extremely volatile and starting a SIP would mean you can easily average out on your investments over a longer period of time which would help you generate better returns in a bull market. Let’s explain with an example, suppose you plan on investing a fixed sum of money monthly and make an investment in a cryptocurrency at the price of $100. Let’s assume the market falls and this price becomes $80 by the time you make your second investment and $60 by the time you make your third investment. If you calculate your average price it would be $80 which is much lesser than the initial price of your first investment and when this market rebounds to a bull run you can expect stellar returns.
Now that you have all the information you need, what next?Now you know the benefits that a SIP would have in the cryptocurrency market, the next step is to find the right broker to help you execute your trades and at the same time provide a seamless experience while doing so. If you want to buy any cryptocurrency like Bitcoin, XRP, Ethereum and are wondering how to buy XRP in Canada then all you need to do is visit the Netcoins website and follow these instructions.
First, you need to provide your personal information to open an account. Then, you need to get your details verified. After this is done, you can transfer money into the wallet and begin trading.SOURCE CREDIT: https://netcoins.tumblr.com/post/658470619101511680/how-to-start-a-cryptocurrency-sip-systematic
